oppn parties Political Funding Reforms: This Government is Not Serious

News Snippets

  • MS Dhoni decides to take a two-month break, will skip West Indies tour but will not retire
  • Phagu Chauhan is the new Governor of Bihar while Ramesh Bais has been appointed as that of Tripura
  • Governors: Anandiben Patel shifted from Madhya Pradesh to Uttar Pradesh and Lalji Tandon from Bihar to Madhya Pradesh
  • Naga talks interlocutor RN Ravi appointed as Governor of Nagaland
  • Noted lawyer Jagdeep Dhankhar appointed as new Governor of West Bengal
  • 84 NDRF teams have been despatched to 23 states to tackle the flood situation
  • Three persons lynched in Bihar after being accused of cattle theft
  • Delhi police seize a consignment of 1500 kgs of heroin and busts a cartel of Afghanistan-Pakistan narcotics dealers with links to the Taliban
  • Supreme Court gives 9 more months to complete the Babri Masjid demolition case trial
  • Priyanka Gandhi not allowed to meet the families of the dead in the Sonabhadra firing, arrested
  • ICC inducts Sachin Tendulkar in [email protected]@@s Hall of Fame
  • Stock markets bleed for the second day. Sensex crashes 560 points
  • S Jaishankar, Minister of External Affairs, says Pakistan should release and repatriate Kulbhushan Jadhav immediately
  • Karnataka Governor Vajubhai Vala asks the Speaker to hold the trust vote latest by 1.30 pm today
  • The Government sends a list of 24 questions to mobile app company that runs video app TikTok seeking answers for anti-national and obscene content carried on the platform
Former Delhi CM and senior Congress leader Sheila Dikshit dies following a cardiac arrest. She was 81
oppn parties
Political Funding Reforms: This Government is Not Serious

By Sunil Garodia

About the Author

Sunil Garodia Editor-in-Chief of indiacommentary.com. Current Affairs analyst and political commentator. Writes for a number of publications.
Buoyed by the lack of corruption in the upper echelons of this NDA government, one was expecting that it will bring about transparency in political funding and election spending, the two most opaque things that lead to corruption and worse. When Arun Jaitley had reduced the amount of cash political parties could receive as donation from a single source in his 2017 budget proposals, one was further enthused that more important reforms would be undertaken in due course.

But belying all hopes, Jaitley has introduced an amendment in his budget proposals that will make donations even more opaque. Hitherto, companies could donate up to 7.5% of their average net profits in the three immediately preceding years to one or more political parties. By proposing an amendment to the Companies Act, 2013, the finance minister seeks to withdraw the cap and the restriction.

Further, what troubles more is that companies will no longer be obliged to disclose the name of the political party to which they have made the donation. This will lead to big corruption as ruling parties can ask for donation to party funds (not needed to be disclosed and hence untraceable) in return for bestowing favours like licenses to companies.

Also, since funding through Election Bonds can be done without disclosing the names, companies should be barred from purchasing more than a certain amount of Bonds every year. In their case, it should be mandatory to disclose the name of the party to whom they paid through such Bonds. Ideally, it will be better if the Election Bond route is kept open only for individuals or non-corporate entities.

The intention of reforming political funding is to smash the cosy nexus between political parties and big business. This amendment is going to achieve the opposite. Hence, it should be withdrawn immediately. Some experts have pointed out that the section in the Companies Act could have been deleted ‘inadvertently.’ If it is indeed so, it should be restored without delay. It is fine if the government wishes to remove the cap, but disclosure norms should stay.